ACSF .. a small cap worth taking a look at. .

American Capital Senior Floating Loans is not going to make you rich, but it will produce some good long term dividends and make some capital gains for you along the way.  This company is a small cap, just over $100 million in value, business development company with a 8% plus dividend. It is relatively new to the market and has some risks, but we believe could be a good investment for some years out. 

ACSF is as it says a floating loan company as in the rate floats on the loans it produces.  That gives the investor some protection against inflation as loans will be adjusted accordingly with customers if the business environment changes.  That should help put a floor under the stock price.  It is also a new concept to BDC companies.  We also like the lower fee structure of ACSF which is only .80 percent far below most business development companies and that allows more interest income to flow to the shareholder.  We will have to wait and see if ACSF becomes a cheap operator like TCAP one of favorites of course. 

ACSF being new to the market also has meant it is under priced stock wise a good bit. Currently trading around $13 we believe the stock should be trading at around $16, which would make for a nice capital gain to add to the dividend payout. 

We are Small Town Investor can not trade this security due to size restrictions, but this does not keep us from suggesting some due diligence and maybe putting some of your bucks to work here however.